Fannie to Remedy MBS Payoff Delays

Fannie Mae has announced that it will pass through mortgage-backed securities payoffs (involving 169 MBS pools) that were delayed due to a servicer's failure to report and remit payments to Fannie Mae.The principal payoffs, relating to 234 loans, will be reflected in Fannie Mae's January pool factors, and the government-sponsored enterprise said it will pass through the amount of the principal prepayments on Jan. 25, the next distribution date for the pools. Fannie Mae said some of the 169 MBS pools have been resecuritized into Mega transactions and real estate mortgage investment conduits. "With respect to all affected Fannie Mae REMIC transactions, we have determined that the payoff from the affected MBS pools will reduce the aggregate outstanding principal balance by less than 1%," Fannie Mae said. The same is true of most Mega deals, but Fannie said the payoffs will reduce the balance in 20 Mega transactions by 1% or more. Fannie Mae can be found online at http://www.fanniemae.com.